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2011 (3) TMI 1372 - ITAT MUMBAIRevision u/s 263 - held that:- unless the twin conditions i.e. (a) the order must be erroneous, and (b) the order must be prejudicial to the interests of the Revenue, must be satisfied, for attracting the provisions of section 263 of the IT Act. If one is present and the, other one is absent then provisions of section 263 cannot be invoked. Since we have already held that the order passed by the AO is not erroneous; therefore, the order passed by the CIT under section 263 of the Act, in our opinion is not in accordance with law and therefore, the same has to be set aside. Revision u/s 263 - period of limitation - in the case of Alagendran Finance Ltd. (2007 -TMI - 40388 - SUPREME Court) held that where an assessment has been reopened under section 147 of the IT Act, 1961 in relation to a particular ground or in relation to certain specified grounds and, subsequent to the passing of the order of reassessment, jurisdiction under section 263 is sought to be exercised with reference to issues which did not form the subject of the reopening of the assessment or the order of reassessment, the period of limitation provided for in sub- section (2) of section 263 would commence from the date of the order of assessment and not from the date on which the order reopening the reassessment had been passed. In respect of issues which did not form the subject-matter of the reassessment proceedings under section 143(3) read with section 147 limitation would commence with reference to the original order of assessment, was processed under section 143(1) and the notice under section 148 was issued for adding unaccounted bogus purchases and unsecured loans, therefore, in the light of the ratio of the decisions cited above, the learned CIT cannot initiate proceedings under section 263 on other issues other than the items covered in the order passed under section 143(3)/147, appeals filed by the assessee are allowed
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